The new gold rush

A new player has stepped into the picture in oil and natural gas exploration here, committing $4.5 million to test potential in a 60,000- acre parcel taking in Norton, Ratters Corner and Wards Creek. Ittihad Capital Corporation, a private fund company with offices in Calgary and Toronto, had the winning bid this fall on exploration rights for the area. In a call from his Calgary office Dec. 4, ICC director Khalid Amin told the Kings County Record the oil and gas potential here “is greater than people realize. “This is very significant for New Brunswick. It could potentially become a ‘have’ province, like Newfoundland” if the site proves the potential he believes it has, he said.

I am all for oil and gas exploration but this kind of language makes it smell a bit fishy. In New Brunswick, the royalty rate on natural gas is 10% of the actual selling price less a ‘proportionate share of production, processing and transportation charges’. To erase the $1.7 billion annual Equalization payment, there would have to be at least $20 billion in natural gas pulled out of ‘them thar hills’ each and every year give or take a few billion. Alberta exports $25 billion each year worth of natural gas (about the same in oil). Is Mr. Amin really saying that New Brunswick has Alberta sized natural gas deposits under its feet?